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At the time of independence, small farmers and landless labourers were kept in a debt-trap chiefly by
Acooperative societies
Bland development banks
Cmoneylenders and traders
Dregional rural banks
Answer & Solution
Correct answer: C. moneylenders and traders
1. Formal rural credit barely existed at independence.
2. **Moneylenders and traders** lent at high interest rates and manipulated accounts.
3. That kept borrowers in a debt-trap.
4. RRBs, cooperatives and land development banks came later, as part of the multi-agency answer to exactly this problem.
_Source: NCERT Class 11 Indian Economic Development, Ch 5 "Rural Development", section 5.3 CREDIT AND MARKETING IN RURA L_
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